Energy Policy

If you know that a sector has arrived when it makes for trade wars between countries, then solar energy clearly has. Last year, the US imposed anti-dumping duties on Chinese imports of solar panels; now the EU has proposed the same. The Chinese have in turn threatened that they will take action against European exports of poly-silicon, the material used for manufacturing solar panels. In February this year, the US filed a case against India at the World Trade Organization (WTO) for “favouring sourcing of panels from domestic manufacturers”.

If you know that a sector has arrived when it makes for trade wars between countries, then solar energy clearly has. Last year, the US imposed anti-dumping duties on Chinese imports of solar panels; now the EU has proposed the same. The Chinese have in turn threatened that they will take action against European exports of poly-silicon, the material used for manufacturing solar panels. In February this year, the US filed a case against India at the World Trade Organization (WTO) for “favouring sourcing of panels from domestic manufacturers”.

India’s solar power policy is now entering round two. And there is much that needs to be reviewed and reworked as the business of solar energy has seen massive turbulence in India as well as globally. In the first phase (2010 to 2013) of the Jawaharlal Nehru National Solar Mission (JNNSM) the target was to set up 1,000-2,000 MW of grid-based solar power in the country. By 2013, the country has indeed commissioned some 1,000 MW of solar power, but 700 MW of this target comes from the non-JNNSM state of Gujarat.

The last image of 2012 is protesters storming the bastion of Delhi, outraged at the brutal rape of a young girl and the culture of violence against women. This outburst by the educated middle class, many of them young women, was spontaneous as much as it was leaderless. But as we move to the next year, we need to think about the response of the government to this protest and others. We need to understand if the Indian state has any clue about what is going on under its nose—and feet.

As per a new directive, the eu will certify buildings for energy efficiency from 2006 onwards. The European Climate Change Programme, established in 2000 to meet Kyoto Protocol targets, has identified the construction sector as providing the largest potential for carbon dioxide emission reduction.

Buildings already account for up to 40 per cent of the eu's energy consumption. And southern European countries are buying more air-conditioning units, further disturbing the energy balance.

Two major events happening at two ends of the world—Japan’s natural disaster and nuclear fallout and unrest in Libya and other countries of the region—have one thing in common. Energy. The fallout from the Fukushima Daiichi nuclear plant, hit by earthquake and then the tsunami, has not yet been contained. As I write this, news is breaking about possible contamination of the seawater surrounding the damaged installation. Fears are it could lead to groundwater contamination and radioactive toxins in the food and fish. Last week there was a scare when Tokyo’s water was reported to have iodine 131 in excess of safe limits. Nobody really knows how badly the core of the reactor is damaged. Nobody’s clear how Fukushima’s problems will be buried.

As I write this piece, the finance minister has dispatched the Union Budget 2011. The press is busy reflecting the views of business and industry lobbies, as they quibble over duty exemptions, insist on financial stimulus and other incentives, and cry for big-ticket reform—foreign direct investment in retail and insurance. The only other discussion is about the growing fiscal deficit: will the finance minister give in to populism while extending the programmes for the poor? Or will he raise taxes to pay for the growing developmental needs of the country? The finance minister, it would seem, is caught between two battles: of checking the bulge in fiscal irresponsibility and of meeting the need for delivering governance.